What Are Some Overlooked Income Tax Deductions for Teachers?

Teachers should be aware of the expenses they can deduct, so that they aren't entirely hindered by paying for classroom materials out of pocket.

There are perks to being a teacher, including union membership, summers off work and the respect that comes with molding young minds. But shrinking budgets in public schools also can lead to certain downsides, such as having to purchase some classroom materials out of pocket. It pays to be aware of all the expenses you can deduct as an educator.

Amount Teachers Can Deduct in Expenses

Teachers can claim up to $250 of unreimbursed work-related expenses for items used in the classroom. The amount goes up to $500 if you and an educator spouse file your income taxes jointly. The deduction is claimed on either Line 23 of Form 1040 or Line 16 of Form 1040A. To qualify for deductions, an educator must teach for 900 hours during a given school year.

Deductions Available to Teachers

The Internal Revenue Service lists deductible expenses for educators as "books, supplies, computer equipment (including software and services), other equipment and supplementary materials that you use in the classroom." Some items are clear deductions, such as notebooks and markers, but the broad definition can cause some deductible items to go overlooked. Tissue boxes, for example, are an individually cheap deduction that can make a dent over the course of a school year if the deduction isn't taken. Unorthodox teaching materials -- such as if you use a video game as a teaching aide in a civics lesson -- also can qualify as deductions if the teacher properly explains how the item fit into the lesson plan.

Restrictions on Gym Teachers

Physical education instructors also can apply for job-related tax deductions, if those items are used for athletics. Even though the athletics department likely supplies equipment, an instructor can deduct a replacement football if the school's football is damaged. Administrative items, such as clipboards used while recording times and scores, also can be deducted, as can first aid items -- provided the instructor has no recourse but to buy those items himself.

Income Counted Against Deductions

Finding overlooked deductions is especially important considering that only those expenses that exceed certain categories of income are deductible. Three types of income count against classroom deductions, each one associated with teachers advancing their own academic credentials. The first is interest on qualified U.S. savings bonds excluded from income because the educator paid qualified higher education expenses. Qualified higher education expenses are those that contribute to an advanced degree in the educator's teaching degree -- such as tuition toward a history educator's master's degree in history or associated textbooks and classroom materials. The second is distributions from a Qualified Tuition Plan that the educator excluded from income. A Qualified Tuition Plan, also known as a "529 plan," is a savings account used exclusively for higher education. The third type of income that counts against material deductions is any withdrawal from a Coverdell Education Savings Account. A Coverdell Education Savings Account is an education savings account that functions similarly to a Roth IRA in that disbursements are tax-free.

References

• IRS: Educator Expense Deduction
• Savingforcollege.com: Intro to ESAs
• IRS: Qualified Tuition Program